
TS Tech redefines supply chain excellence with exemplary mmog/le implementation
TS Tech Americas, Inc., established in 1995 and headquartered in Reynoldsburg, Ohio, is a manufacturer of seats and interior components for cars, motorcycles and recreational vehicles. It serves as the Americas headquarters and technical center for TS Tech, a global enterprise established in Japan in the 1960s.
The organization as a whole is driven by the philosophy of “Beyond Comfort,” which exemplifies its commitment to not only innovating to deliver a higher level of comfort in its products but also uplifting people, suppliers and communities, across its global footprint. The company prioritizes environmental consciousness, works through its Supplier Diversity program to advance minority business enterprises (MBE) and actively works to be a good neighbor at local level.
TS Tech Americas proudly serves an esteemed clientele, including Honda facilities in the US, Canada and Brazil, Yamaha, Kawasaki and Harley Davidson.
And always remember that your competitors aren't waiting,” agreed Baltazar.**
“Start now. Don't wait for a customer to come to you and say it's a requirement. Don't wait for the industry to force you into it. You need to get started.”
Leveraging qad tools to build top-down support and steer a seamless MMOG/LE transformation
TS Tech leveraged every tool available to them and even created some of their own to build enterprise-wide support for the company’s MMOG/LE transformation. Knowing that top-down support is critical for any major project, TS Tech leadership prioritized engaging and educating executive management.
“There were some cultural differences that we had to overcome in a total consensus way of decision-making, so making top management understand what we are really going to gain out of this,” stated Baltazar. Once top management saw how alignment with MMOG/LE’s requirements could reduce inventory, improve customer relationships and drive value for the organization, the organization embraced the program wholeheartedly.
With a strong system of top-level support in place, TS Tech got to work in the following action areas:
“A big tenet of MMOG/LE is to automate. The less Excel sheets and manual processes, the better. So, one of our big pushes is to utilize technology as much as we possibly can,” explained Horwitz.
“One other thing that was very visual for everyone was the company's dedication to create the MMOG/LE team. They were really putting their money where their mouth is and saying, 'This is serious. We want to support you, and we're here to give you the tools you need to be successful.'”
Another core tenant of MMOG/LE involves using ERP systems as a backbone for aligning data on customer demand, running material requirements planning (MRP), facilitating scheduling and managing supplier relationships. QAD has participated in the development of MMOG/LE since Version 2 and offers many resources to support customers, including specialized training led by certified experts like Onica, built-in process maps and a solution sheet mapped to all 176 MMOG/LE criteria. QAD customers report a 17 to 60% reduction in inventory and an 8 to 20% increase in supplier rating as a direct result of MMOG/LE.
“QAD has a program, in large part, that integrates all the MMOG/LE requirements into it. The system can support all those activities we need to do. In addition, we’ve been able to also invest in new modules that relate more directly to the supply chain. But we’re really excited. As people are seeing how they’re going to be able to use these new systems and increase their efficiencies, this is going to help them be even better than they are,” stated Horwitz.
Building a culture of supply chain excellence and unlocking operational efficiencies with QAD and MMOG/LE
Since implementing MMOG/LE with QAD’s support, TS Tech has improved its inventory turnover ratio and is approaching benchmark level at each of its Tier 1 facilities, resulting in a cost savings for the organization.
MMOG/LE has also been tremendously beneficial for the TS Tech organization as a whole. Executive management has more visibility into the full value stream and is using insights from the Microsoft Power BI dashboards to optimize resource allocation. The company always performed well in terms of production efficiencies, and is now seeing the same results from the material side of its business while also complying with OEM requirements.
Some of the greatest improvements, however, are visible among the TS Tech workers who interface with QAD Cloud ERP and the team’s MMOG/LE tools every day. By explaining the purpose and potential impact of MMOG/LE, as well as giving workers the tools they need to succeed, TS Tech reduced redundant work and automated manual tasks.
“We're uncovering the redundant work where we had three or four people basically doing the same thing. So, we're looking for those types of efficiencies. And that alone makes everyone's job easier. They all buy in. And our executive management can see that already,” explained Baltazar.
By automating once-manual processes and reducing redundant work, TS Tech has also strengthened collaboration and increased job satisfaction among employees.
“It’s giving them even more of a voice. We do have a lot of programs where we try to get feedback from our people in the Kaizen activities. However, they’re very excited because this is a program where we can talk to the materials management people that may not always get as much spotlight as the quality folks or other groups,” expressed Horwitz. “They’re excited to have their management engaged with them in their day-to-activities as a result of answering the MMOG/LE assessment.”
The only thing Horwitz would have done differently is embrace MMOG/LE even sooner. “Start now. Don't wait for a customer to come to you and say it's a requirement. Don't wait for the industry to force you into it. You need to get started,” advised Horwitz.